east central and southern africa health …

EAST CENTRAL AND SOUTHERN AFRICA HEALTHCOMMUNITY ECSA - HC

INTERNATIONAL DEVELOPMENT FUND TO SUPPORT THEAFRICAN TECHINICAL CAPACITY FOR NUTRITION

PROJECT IN KENYA, UGANDA AND TANZANIA

PROJECT REPORT AND STATEMENT OFRECEIPTS AND PAYMENTS FOR THE PERIOD FROM

1 JULY 2015 TO 30 JUNE 2016

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EAST CENTRAL AND SOUTHERN AFRICA HEALTH COMMUNITY (ECSA-HC) -INTERNATIONAL DEVELOPMENT FUND TO SUPPORT THE AFRICAN TECHINICALCAPACITY FOR NUTRITION IN KENYA, UGANDA AND TANZANIA

PROJECT REPORT AND STATEMENT OF RECEIPTS AND PAYMENTS FOR THEPERIOD FROM 1 JULY 2015 TO 30 JUNE 2016

TABLE OF CONTENTS Page

PROJECT INFORMATION 1

LIST OF ABBREVIATIONS 2

PROJECT REPORT

Introduction 3

Project Objectives 3

Project Activities 3

Project Financing 4

Statement of management responsibilities 4

REPORT OF THE INDEPENDENT AUDITORS 6-8

STATEMENT OF RECEIPTS AND PAYMENTS 9

NOTES TO THE STATEMENT OF RECEIPTS AND PAYMENTS 10


PROJECT REPORT AND STATEMENT OF RECEIPTS AND PAYMENTS FOR THEPERIOD FROM 1 JULY 2015 TO 30 JUNE 2016

PROJECT INFORMATION

Project name: African - Technical Capacity for Nutrition in Kenya,Tanzania and Uganda

Project Implementation Agency: East Central and Southern Africa Health Community

Coordinator of Finnish Partners: Prof.Yoswa M. Dambisya

Bankers: Stanbic Bank Tanzania LimitedArusha BranchP.O Box 3062Arusha-Tanzania

Auditors: Ernst & YoungCertified Public AccountantsTanhouse Tower (4 h Floor)34/1 - Ursino South; New Bagamoyo RoadP.O. Box 2475Dar es Salaam, Tanzania

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PROJECT REPORT FOR THE PERIOD FROM 1 JULY 2015 TO 30 JUNE 2016

LIST OF ABBREVIATIONS

Abbreviation DescriptionBPF Best Practise ForumC&DST Culture & Drug SusceptibilityCRHC Commonwealth Regional Health CommunityDRS Drug Resistance SurveyDR-TB Drug Resistant TuberculosisDST Drug Susceptibility TestingECSA-HC East, Central and Southern Africa - Health CommunityEQA External Quality AssuranceGF Global FundHBC High Burden TB CountriesMDR-TB Multi- Drug Resistant TuberculosisMOH Ministry of HealthMOHSW Ministry of Health and Social WelfareMoHCDGEC Ministry of Health, Community Development, Gender, Elderly and

ChildrenNRL National Reference LaboratoryNTP National Tuberculosis ProgramNTRLs National TB Reference LabsPMDT Programmatic Management of Drug Resistant TuberculosisPR Principal RecipientRAP Regional Advisory PanelRSC Regional Advisory CommitteeSNR Supra - National Tuberculosis Reference LaboratoriesSR Sub-RecipientSRL Supra-National Reference LaboratoryTA Technical AssistanceTB TuberculosisWB World BankWHO World Health Organisation

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1. INTRODUCTION

The East, Central and Southern Africa Health Community (ECSA) formerly known asthe Commonwealth Regional Health Community for East, Central and SouthernAfrica (CRHC - ECSA) was established in 1974 by Commonwealth Secretariat inLondon. The secretariat was set up to promote and support the aims of East, Centraland Southern Africa Health Community (ECSA), an intergovernmental organizationformed by Ministers of Health to foster and strengthen regional corporation andcapacity to address the health needs of East, Central and Southern Africa.

Currently it has 9 member countries namely Kenya, Lesotho, Malawi, Mauritius,Swaziland, Tanzania, Uganda, Zambia and Zimbabwe.

Since 1980, ECSA has functioned under the direct control of Members Statesgovernments, who see ECSA as a permanent mechanism for promoting cooperationin health in the region. The Executive Secretary based in Arusha Tanzania heads theECSA Secretariat. The Secretariat is the focal point for health policy formulation inthe region, working closely with Ministers of Health, governments and institution inthe member countries to identify and address priority health needs, stimulate policydialogue, and promote harmonization approaches.

ECSA is recognized as an important indigenous organization that has earned thesupport of the government and other regional and international organizations. Itenjoys political, administrative and professional support of the Member States whoguide and monitor its activities through Ministerial Conferences, Expert CommitteeMeetings and other forum.

In November 2002, The Conference of Health Ministers held in Entebbe, resolvedthat the Community be renamed "The East, Central and Southern African HealthCommunity ECSA-HC" as part of the institutional reforms undertaken by thecommunity to reflect ownership.

2. PROJECT OBJECTIVE

To strengthen the ability of the Governments of Kenya, Uganda and Tanzania to buildthe technical capacity of their frontline workers for the delivery of essential nutritioninterventions at health facilities and community level.

3. PROJECT ACTIVITIES

3.1. Purchase of project equipment's (laptops, desktops and related equipment forproject staff).

3.2. Assessment and desk reviews of the existing in-service and pre-servicetraining packages for frontline health workers

ECSA- HC facilitated an assessment and desk reviews of the existing in-service andpre-service training packages for frontline health workers. The assessment was doneby a team of consultants from the three countries coordinated by the regionalconsultant. The findings were disseminated widely to the country stakeholders from

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3. PROJECT ACTIVITIES (Continued)

Kenya, Uganda and Tanzania who enriched further the information which wasthereafter used to inform the development process of the ECSA training packages.

The procurement of consultants for development of the pre service and in servicetraining packages and designing the knowledge exchange platform was done andcarried on the assignment with close consultation and supervision of ECSA team.

3.3. In country stakeholders workshop to disseminate the findings

Each country participating in the project had an opportunity to further deliberate onthe findings of the assessment through country stakeholder's consultative workshopswhich ECSA convened to ensure sufficient inputs are gathered to inform developmentof the training packages.

Debriefing meeting was also held with the high level officials from the three countriesto share the finding and solicit buy in for the project.

4. PROJECT FINANCING

A total of 192,993 USD Dollars was received by the ECSA - HC during the year 2015to 2016 into two installments. The first installment was USD 99,993 received inFebruary 2016 from World Bank, the second installment was USD 93,000received inJune 2016 also from World Bank.

5. STATEMENT OF MANAGEMENT RESPONSIBILITIES ON THE STATEMENT OFRECEIPTS AND PAYMENTS FOR THE PERIOD FROM 1 JULY 2015 TO 30JUNE2016

The management of East, Central and Southern Africa Health Community (ECSA-HC) accepts responsibility for the statement of receipts and payments, which hasbeen prepared on a modified cash basis of accounting. Modified cash basis ofaccounting is an acceptable comprehensive basis of accounting other than theInternational Financial Reporting Standards. Under this basis of accounting, incomeis recognized when received rather than when earned, and expenses are recognizedwhen paid rather than when incurred.

The management is of the opinion that the statement of receipts and paymentspresents fairly the state of financial affairs of the Project to Support the African-Technical Capacity for Nutrition in Kenya, Tanzania and Uganda. Themanagement further accepts responsibility for maintenance of proper accountingrecords which disclose with reasonable accuracy the financial position of the projectas well as adequate systems of internal controls. They also have responsibility fortaking such steps as is reasonable to safeguard the assets of the project and toprevent and detect fraud and other irregularities.

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6. PROJECT AUDITORS

Ernst & Young were the appointed auditors for the project for the period from 1 July2015 to 30 June 2016.

Approved by management of East Central and Southern Africa Health Community (ECSA-HC) on 12 May, 2017 and signed on its behalf by:

Prof. Yoswa M. DambisyaDirector General

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Frost & Young Tel +255 22 2927868/71CyP.O Box 2475 Fax: +255 22 2927872

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3411 Ursino South www ey omBuilding a better New Bagamoyo Roadworking world Dar cs Salaam. Tanznia

INDEPENDENT AUDITOR'S REPORT

To the members of management

EAST, CENTRAL AND SOUTHERN AFRICA HEALTH COMMUNITY (ECSA-HC) -INTERNATIONAL DEVELOPMENT FUND TO SUPPORT THE AFRICAN TECHINICALCAPACITY FOR NUTRITION IN KENYA, UGANDA AND TANZANIA PROJECT

Opinion

We have audited the financial statements of East, Central and Southern Africa HealthCommunity (ECSA-HC) - International Development Fund to Support the African TechnicalCapacity for Nutrition in Kenya, Uganda and Tanzania Project set out on pages 9 to 10, whichcomprise the statement of Receipts and Payments for the period from 1 July 2015 to 30 June2016 and a summary of significant accounting policies and other explanatory information.

In our opinion, the financial statements of the project for the period from 1 July 2015 to 30June 2016 are prepared in all material respects, in accordance with the financial reportingprovisions of the contract dated 24 November 2014 between the International Bank forReconstruction and Development and East, Central and Southern Africa Health Community(ECSA-HC)

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Ourresponsibilities under those standards are further described in the Auditor's Responsibilitiesfor the Audit of the Financial Reports section of our report. We are independent of theOrganization in accordance with the ethical requirements that are relevant to our audit offinancial statements in International Ethics Standards Board for Accountants' Code of Ethicsfor Professional Accountants (IESBA Code), and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter - Basis of Accounting and Restriction on Distribution and Use

We draw attention to Note I to the financial statements, which describes the basis ofaccounting. The financial statements are prepared to assist the project in complying withfinancial reporting provisions of Part 4 of the contract dated 24 November 2014 between theInternational Bank for Reconstruction and Development and East, Central and SouthernAfrica Health Community (ECSA-HC). As a result, the financial statements may not besuitable for another purpose. Our report is intended solely for the International Bank forReconstruction and Development and East, Central and Southern Africa Health Community(ECSA-HC).and should not be distributed to or used by parties other than the InternationalBank for Reconstruction and Development and East, Central and Southern Africa HealthCommunity (ECSA-HC). Our opinion is not modified in respect of this matter.

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INDEPENDENT AUDITOR'S REPORT (Continued)

Responsibilities of Management and Those Charged with Governance for theFinancial Statements

Management is responsible for the preparation of the financial statements in accordance withthe financial reporting provisions of the contract and for such internal control as managementdetermines is necessary to enable the preparation of financial statements that are free frommaterial misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing theOrganisation's ability to continue as a going concern, disclosing, as applicable, mattersrelating to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Organisation or to cease operations, or has norealistic alternative but to do so.

Those charged with governance are responsible for overseeing the Organisation's financialreporting process.

Auditors Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statementsas a whole are free from material misstatement, whether due to fraud or error, and to issuean auditor's report that includes our opinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an audit conducted in accordance with ISAs will alwaysdetect a material misstatement when it exists. Misstatements can arise from fraud or errorand are considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these financialstatements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

" Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or error, design and perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control.

* Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the community's internal control.

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INDEPENDENT AUDITOR'S REPORT (Continued)

* Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the management.

* Conclude on the appropriateness of management's use the going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertaintyexists related to events or conditions that may cast significant doubt on Organization'sability to continue as a going concern. If we conclude that a material uncertainty exists,we are required to draw attention in our auditor's report to the related disclosures infinancial statements or, if such disclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Organization to cease tocontinue as a going concern.

We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.

Ernst & YoungCertified Public AccountantsDar es Salaam

Signed by: Neema Kiure Mssusa (Partner)

Date: j / 2017

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STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD FROM 1 JULY 2015TO 30 JUNE 2016

Amount in US$RECEIPTSBalance at the beginning of the period 44,076Funds received from World Bank 1st instalment Feb. 2016 99,993Funds received from World Bank 2nd instalment June 2016 93,000Total Funds available for the period 237,069

PAYMENTSConsultancy 12,350Workshops/ Training 34,413Equipment 11,981Total expenditure for the period 58,744

Closing balance 178,325

Closing balance represented by:Cash at bank 174,810Project staff imprest 4,026Project payables (511)

178,325

Approved by Management of East Central and Southem Africa Health Community (ECSA-

HC) on I May, 2017 and signed on its behalf by:

Prof. Yoswa M. DambisyaDirector General

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NOTES TO THE STATEMENT OF RECEIPTS AND PAYMENTSFOR THE PERIOD FROM 1 JULY 2015 TO 30 JUNE 2016

1. BASIS OF PREPARATION

The project financial statements have been prepared on a modified cash basis of accountingwhich is a comprehensive basis of accounting other than the International Financial ReportingStandards (IFRS).

The financial statements which comprises the statement of Receipts and Payments areprepared to assist the project in complying with financial reporting provisions of the contractdated 24 November 2014 between the International Bank for Reconstruction andDevelopment and East, Central and Southern Africa Health Community (ECSA-HC). As aresult, the financial statements may not be suitable for another purpose.

The presentation currency used in the preparation of the statement of receipts and paymentsis United States Dollar (US$).

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of these project financialstatements are set out below.

2.1 Revenue recognition

Grant income is recognized upon receipts and the amount can be measured with sufficientreliability.

2.2 Expenditure

Expenditure in respect of goods and services is generally recognized in the statement ofreceipts and payments statement at the time of payment and expenditures approved forpayments and subsequently paid are included in the total expenditure and reconciled inclosing balance as project payables.

Expenditure of capital nature such as acquisition of fixed assets for the project are notcapitalized but are expensed in the period of acquisition.

2.3 Foreign currency translation

The financial statements are presented in US Dollars (US$) which is the functional currency.Different currency transactions are recorded using the exchange rate at the date oftransaction. Funds from the donor are received by the Bank in US Dollars in the East Centraland Southern Africa Health Community (ECSA-HC) Account.

The bank accounts and accounting records are maintained in US Dollars. Grants are receivedby East Central and Southern Africa Health Community (ECSA-HC) in US Dollars.

The ECSA maintain a separate bank account; there is a separate project cash book whichrecords all funds received for the project deposited in Account Number 9120 000 526957 atStanbic Bank Tanzania Limited, Arusha branch in the name of ECSA - WB Project togetherwith the project's expenditure.

2.4 Project stocks/inventories

All purchases of stationeries and other consumables are expensed in the Statement ofReceipts and Payments at the time of purchase.

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